The People's Bank of China (PBOC) plans to create an independent department to manage the exchange rate, the Shanghai Securities News reported Friday, citing sources close to the matter.

Presently, exchange-related issues are managed by an exchange rate office under the Monetary Policy Department. This office's major responsibilities include researching and drafting RMB exchange rate policy, proposing exchange rate reform schemes and organizing policy implementation.

According to the report, the new department will be independent from the Monetary Policy Department and will be based on the current exchange rate office and the bank's financial market department. Wang Yu, the deputy director of the Monetary Policy Department, will reportedly head the new department.

There is not an available timetable for the establishment of the new department.

For more details, please read the full story in Chinese:

(http://paper.cnstock.com/paper_new/html/2008-08/01/content_64243316.htm)

(China.org.cn by Yan Pei August 1, 2008)